Why Outsource?

We’ll be honest to admit that outsourcing is neither the holy grail of doing business today nor it is the panacea to all your business woes.

The business process outsourcing will not totally address any cost reduction programs that you have laid out nor can it bring immediate success to businesses. We can only give advice around how you can best approach this proposed solution in order for you to realize its full potential. Hence, outsourcing may be a strategy, but it is also just one of several management tools with its own set of benefits and risks.

If you are a new business or an already established one and you are keen to learn how you’ll best reap the benefits of outsourcing, don’t worry, we promise to guide you in making your decisions carefully before you sign up an outsourcing contract.

Let’s begin. The first step is to identify your primary business reasons at the onset of outsourcing. Your reasons must be clear and practical because you will need to place those when you prepare your service requirements before signing an outsourcing contract.

Then we’ll show you what in fact may be obvious already – the benefits of outsourcing. Still, you need to be familiar with all the values that this solution can give your business, especially in response to your most critical business operations to reap the success of your investment. We’ll indicate these five and elaborate further:

  • To focus on core services

  • To make up for workforce shortages

  • To gain access to high-value talents and skills
  • To reduce cost
  • To achieve defined service levels

Focusing on core services.

Doing outsourcing right gives you maximum flexibility to focus on your core competence. You also get to use your in-house resources to address priorities. Essentially this allows your organization to more effectively and efficiently use your resources (e.g., financial, human and management). Outsourcing your non-core functions clears your path to address mission critical issues vital to your operational success.

Address Workforce Shortages.

The issue of staff shortages is not only true to small start-ups. Even if your business is big, you’ll still encounter low supply of high-value talent, especially when the general population of your workforce is aging or when budget poses as a big constraint.

Outsourcing opens the door to finding the right talent. No more dry spell of highly-skilled workforce for now and then by outsourcing or hiring a virtual staff at low-cost country like the Philippines, you will be surprised at the cost. Compared to hiring from your own country, hiring locally allows you to get three equally-competent and competitive staff for a value of one from high-cost countries like the United States and Australia. That’s technically cheaper by 70% than hiring a professional from your country.

Access to high-value talents and skills.

Startups and small businesses do not immediately have access to skilled workforce. Or when the company is big, shortage of skilled and experienced staff  as a problem is not remote. Even if staff may be existing, however, the workforce do not always have the required skills to keep pace with a rapidly evolving technology.

Outsourcing offers the best solution to access skills and recruit staff that are difficult to recruit and retain. With tactical outsourcing, there is an immediate solution available to fill the need for new staff when opening up new services.

Cost reduction

When budget is short, your company may not be able to broaden your market, expand, and focus on core competencies to the fullest. With outsourcing, your company get the flexibility to decide which of your functions or operations you can perform in-house and which ones to outsource. With outsourcing, you also reap the benefit of capital and recurring cost reduction.

Achieve Defined Service Levels.

Outsourcing gives you the ability to make sound decisions about how to conduct your business, even on how best to approach your delivery of your company’s services to all your stakeholders.

During peak loads, outsourcing is highly helpful in filling in the gaps to the level of equipment and needed staff. Meeting normal demand but still maintaining good customer service can be supplied by outsourcing staff during peak periods. Outsourcing comes in handy in such situations, when demand for flexibility is needed.